There are many key steps in the franchising process but none are more important than evaluating a franchises' Item 19, or Franchise Disclosure Document (FDD).
The Item 19 outlines earnings, expenses and other relevant factors that will affect the future financial performance of a franchisee once they are up and operating. Unless a prospect is opening a franchise with the goal of saving the world, making profit may be one of their motives.
Today, prospects have become progressively more thorough in their search process, with more and more looking for hard numbers to give them deeper insight into the earnings potential of a franchise brand.
Providing straightforward, valuable financial data to prospects contributes to developing a high level of trust.
The "How Much Money Can I Make?" Franchise Question
At AdvantaClean, the financial performance of our franchises vary tremendously. Many of the factors that influence revenue and profit are controlled directly by franchisees' efforts and their management skills. Differing investment options and different approaches to business ownership make overall results harder to qualify and report.
So, to put it bluntly, we can't tell you with certainty how much money you can make owning and running an AdvantaClean franchise because so many of the contributing factors depend on you.
What we can tell you is that your best judgment about your chances for financial success with us will come from talking directly with our franchisees.
We do publish some key financial metrics that attest to the strength of our business model, and we can also tell you that, with close to a 98% success rate, our business model works for just about anyone who can follow it.
The top 50% of established AdvantaClean franchisees1 are doing really well.
Here's how we know; these figures are taken directly from our current Franchise Disclosure Document (FDD):
- $679,430 Average Gross Revenue
- 67.5% Gross Margin (after COGS and labor/subcontracted labor)
- $2,328 Revenue per Job
- $149,006 Largest Single Job 2
- 356 Total Number of Jobs
1Established franchisees represents franchisees operating more than 49 months.
2Largest single job is the highest revenue job performed by a franchisee operating between 12-24 months in business. For more information please see the AdvantaClean Franchise Disclosure Document (FDD).